Banking

Commonwealth Bank chief executive Ian Narev will be gone by the end of the financial year, as the bank deals with the fallout from a money-laundering scandal which has potentially left it facing billions of dollars in fines.

Commonwealth Bank chief executive Ian Narev will be gone by the end of the financial year, as the bank deals with the fallout from a money-laundering scandal which has potentially left it facing billions of dollars in fines.

During the past few years the Commonwealth Bank has been exposed in one scandal after another. Now it's dealing with the fallout of a court case brought against it last week alleging massive breaches of anti-money laundering regulations. Today, against that backdrop, the CBA announced a yearly profit of nearly $10 billion.

Financial crimes agency, AUSTRAC, launched federal court action last week, accusing the Commonwealth Bank of more than 53,000 breaches of the law.The CBA board accepted it's own 20 per cent pay cut and has killed off all short term bonuses for executives but says it still has full confidence in CEO Ian Narev.

Banking executives and board members who are complicit in money laundering or fraud should face jail terms, Senator Nick Xenophon says, in the wake of a CBA scandal that could see the institution fined up to $1 trillion.

The Commonwealth Bank is locked in the early stages of damage control as it confronts allegations it allegedly breached anti-money laundering rules exposing itself to potential fines of almost a trillion dollars.

Financial regulator Austrac has announced it is launching civil proceedings against the Commonwealth Bank in the Federal Court. The bank is accused of 'serious and systemic' breaches of anti-money laundering and terrorism financing laws. ABC business editor Ian Verrender joins 7.30 to explain what's going on.